About Impact Investing

What is Impact Investing?

According to the Global Impact Investing Network, it is “investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return.”

To provide capital to address the world’s most pressing challenges in sectors such as sustainable agriculture, renewable energy, conservation, affordable and accessible basic services including housing, healthcare, and education.

Why is Impact Investing important?

The philosophy is that as we invest, we should take a longer view and do so in companies that benefit society and the planet.

Who makes Impact Investments?

Pension funds, private foundations, insurance firms, family offices, banks, and individual investors.

How does Impact differ from ESG?

Funds that offer environmental, social, and governance (ESG) products typically assign an ESG rating/score to firms based on multiple factors. As there is no accepted definition for ESG, ratings can vary significantly depending on the methodology employed. A company can have a high ESG rating but not be seen as really making a difference. The SerenityShares' vision of impact investing starts with 20 societal, social, and environmental challenges and identifies companies which generate revenues from supplying products or services “targeting” these impact activities. Click here to see the 20 challenges.

How big is the Impact Market?

The most recent figure from the US Forum on Sustainable and Responsible Investment (US SIF) puts total SRI assets at $8.7 Trillion globally.

(see “Insights” for additional information)

Why did you develop ICAN?

There was a need for a product that could meet the investable, liquid, transparent requirements sought by institutional investors while enabling individuals to more easily access investments in this area, thus democratizing impact investing among investors of all sizes.

Why is ICAN important?

Most impact investments historically have been through private equity or by purchasing targeted bonds. Institutional investors have noted a shortage of high quality investment opportunities across the risk/return spectrum--especially in public equity; along with difficulty in exiting private investments. ICAN, using an ETF structure, opens up impact investing to all types and levels of investors and in a liquid and transparent manner.

What is your methodology?

Beginning with a list of 6500+ companies listed on the NYSE and NASDAQ, we identify firms whose activities have a direct beneficial impact to the societal, social, and environmental challenges we’ve identified. This includes eliminating firms involved with tobacco; weapons; and fossil fuel exploration and production. We then screen the resulting universe for market cap, price, and liquidity to come up with our investable list. For more information, please read the prospectus or visit our underlying index provider’s website at http://impactindexsolutions.com

What are the 20 Challenges?

After extensive research including a detailed review of the UN Sustainable Development Goals and other studies, SerenityShares identified 20 challenges impacting society and the environment that public equity investments could target. It is a diverse group of sectors from renewable energy to elder care. Click here to see our infographic.

Why did you choose these specific companies?

As the index is passive, we did not technically choose any companies, these were the ones that resulted from our analysis. We recognize that the notion of “good” is subjective so we made available an explanation for each included firm. Click here to see their inclusion rationale.

How often do you make changes to the Index?

The index is reviewed annually and rebalanced quarterly.

How is the Index calculated?

The index follows a modified capitalization weighting formula at the time of our rebalancing to ensure that large companies don’t dominate the holdings and gains in smaller firms are measurable.

For more information, please read the prospectus.

Where do I find holdings/weights?

You can find this information at: https://serenityshares.com/impact-holdings

How does the fund align with the UN SDGs?

The UN SDGs were developed to define 17 bold, brash challenges facing the world from solving poverty to clean water to well-paying jobs and to track and identify where and how resources from government, charity, and public and private sources were being allocated. SerenityShares’ list of challenges reflect and identify investable areas, most of which are aligned with the SDGs. [Click her for a comparison]

How to Invest in Our Funds:

How do I invest in SerenityShares ETFs?

SerenityShares ETFs are listed on the NYSE Arca, and trade in a similar way that shares of publicly traded companies do. Investors can buy and sell SerenityShares ETFs through standard brokerage accounts using the ticker “ICAN” or the ISIN or CUSIP identifier found on the product summary page during normal NYSE exchange trading hours.

Are options available?

Not at the present time.

What is the minimum investment?

Investors can purchase as little as a single share from their broker for the price of a dinner out.

Dividends / Capital Gains / Taxes

How often does SerenityShares distribute dividends?

The Fund pays out dividends, if any, from their net investment income, on a quarterly basis. Our first dividend was paid in September 2017.

How often does SerenityShares distribute capital gains?

Capital gains, if any, would be distributed annually.

Can dividends from SerenityShares ETFs be reinvested?

This is a question for your broker. Brokers may make dividend reinvestment services available to their customers.

What are the tax advantages of SerenityShares ETFs?

ETFs that track a passive index are less likely to realize capital gains that must be paid to investors on an annual basis. The creation / redemption process leads to in-kind transactions, the result of which is a non-taxable event for the fund. Additionally, passive indexes tend to have lower portfolio turnover, and are therefore less likely to realize capital gains. Since SerenityShares ETFs are new, there is no history of distributions.

Which tax forms will investors receive?

Your broker will provide a 1099.

Any tax or legal information provided is not exhaustive. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.